Getting rid of debt including defaults. Updated.

lee20010

Hi there, 3 months ago I promised myself I would try to make my credit file improve as much as possible, with possibly the lowest score on this website at a shameful 391. I needed to turn things around. Being only 23, not on the electrol roll with 4 defaults to my name (none of which are my fault ironically but you'll see why) Things needed to change and fast.

Step One: I checked my credit file via 'checkmyfile' to view all the accounts outstanding.

Step Two: I took out a pre-paid credit card with the cash bulder plus feature, which means I pay £5.95/month for 12 months, and once that is completed, my credit history should show I've repaid a loan. Sure people may say it's a waste of money, but the effect it would make on my file is worth it.

Step Three: I contacted all the companies I owe money to, being ORANGE, O2 and THREE. All due to mobile phones.

I won't go onto more steps as this is how far I've gone so far, but the story is similar with each provider, and yes it was a bit of bad luck and carelessness. The best response I've got it from ORANGE, who actually have defaulted me twice.

Here's what I wrote to them. (I emailed the Chief Executive of each company)

Good Afternoon Mr Dyson.

Sorry to interrupt your schedule but I've tried every route possible without any luck. I recently checked my credit file for the first time and noticed there was an error by ORANGE . According to the report I've DEFAULTED on a Credit agreement with ORANGE. I took out a Mobile Phone contract out in 2008, I used my local store which was 'JAG communications' However before using my account, I noticed my area didn't receive signal at the time. So I took the phone back into the store to terminate my contract as I was given 14 days as long as I never used the mins/txts etc. I was then called by a member of 'JAG commuications' a couple of months later to be told Orange had improves the coverage around my area and that they would like to offer me a special deal. Which I agreed to take, yet finding the same result with no signal and returning the phone in store. Although this was dealt with directly with Orange, I believe JAG were a partner of the company. Or at least, they were advertised as a partner. I checked my file for the first time last month to find 2 defaulted accounts with Orange, one for the sum of £738, and the other £157. They both seem to add up the total cost of each contract. Something that was cancelled and dealt with instore (to my knowledge).

My concern is, I can not get any credit in my name what so ever due to these defaults. And for something so petty and simple to fix, I feel very let down. I don't place the blame on you personally of course. But I'm having to deal with the effects for the next 4 years (according to my report these defaults wont go away until 2015) I just want these accounts sorted 100%.

(It goes on to show my address etc which no one needs to know)

After a few emails exchanged he replied with this yesterday.


Case Reference: 1xxxxxx
Account Number: 5xxxxxxx

Please respond to executive.office@orange.co.uk

Dear Ms Davis,

Further to your email received at 13.49 today. Thank you for providing your old postcode, which has enabled me to investigate the issues raised.

On checking your account, I found the three phones that were connected by Jag Communications, in 2007 had not been disconnected correctly by them. This led to the phones being disconnected by Orange for non payment and subsequently, this caused an adverse affect on your credit file.

I am happy to confirm that I have applied a credit of £754.65 to account number xxxxxxxx and £154.34 to account number xxxxxxxx today. This leaves a final nil balance on both numbers.

I have emailed our Credit Referrals department, to request that your Credit File be updated. I will email you once a response has been received from them. Please accept my apologies for any inconvenience or upset this matter may have caused you.

I trust the above is satisfactory.

Yours sincerely



Christine Bell
Executive Office

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What does this actually mean for my credit future is the first question.

bottleofred

Hi Lee,

It would appear that even if the 2 defaults from Orange are removed from your credit file, then the other 2 will still be on your credit file. As you are aware, defaults stay on your credit file for 6 years from the date they are applied and make it pretty much impossible to get a chequebook, never mind credit. Are you saying the 2 other defaults happened due to similar circumstances to the orange ones? If this is the case, then you could continue to try to contact the chief executive of each company in the same way as you did with Orange, but am unsure as to whether or not you'll get a result.

Good luck though

Red

lee20010

Yes the same result, according to 'Three's' terms and conditions on connection, they MUST provide a coverage check and cannot sell a product if someone is unable to use it so to speak. Same with O2.

I've emailed them all, THREE said they will get back to me next week, nothing from O2 just yet. Tho the account for THREE is £44 and O2 £37. However if they concede they were at fault like ORANGE have, is it likely they remove the defaults?

I assume that is what ORANGE are doing?

P.S I've registered to be on the electroll roll which will have me on there from July 1st.

bottleofred

I honestly have no idea if they'll remove the defaults, but do know from personal experience that once they are on your file, it's very difficult to get them removed until they drop off after the 6 years. Orange crediting the account is certainly a step in the right direction, but you'll have to wait and see what they do next.

lee20010

I guess I will find out when I update my credit report next month. I hope being on the electroll register boosts my rating somewhat. I knew things were bad when I got turnt down for a current account.

Trajal

I would definitely wait for responses from all of the companies.

Also I strongly suggest you do not apply for any credit in the meantime.

I also managed to get 4 defaults removed recently from my credit file, for a variety of reasons, including one simply based on 'goodwill' from one company.

It is -perfectly- likely that you can get them to remove those defaults if you are very careful about how you approach them.

Heck, I even got HSBC to remove an arrangement to pay marker from my file. These companies are capable of removing these notices to credit files, don't take no for an answer! If at first you don't succeed, keep complaining as high up the chain as you can (as you seem to have already managed).

I find a letter to the chief exec's office seems to work much better than dealing with anyone else also.

lee20010

Once these are taken away, as orange is around 90% of my outstanding debt, I'm going to try apply for a high rate credit card, probably after the summer, just so it's something else to get my credit going.

lee20010

what do you think?

summerstreetallotments

..I wouldn't apply for a credit card so soon as it'll show on your file...and you're not likely to get it at your age..and when you haven't been on the electoral register for long.... You have to remember that having credit isn't a right...and it'll take a bit of time to improve things

lee20010

Some of you might have read some of my threads regarding too many defaults and sorting them out etc. Yesterday I phoned '3' as I wanted to dispute my default...They agreed to wipe the debt clear (only £44) but said the default would remain...

I checked my credit file (and to my shock)

Three have already updated on Expirien. It now says my account it settled, and my payment history is all green 0...

So whats actually happened

chanz4

they messed up in your favour